Prime Minister Kostas Karamanlis has sent a clear message to his
ministers at a Cabinet meeting today to accelerate the governments
work, demanding a clear timetable from each ministry for its
objectives. He asked to be continually briefed, adding that the
government is ready to implement its programme to the relief of low
brackets. He was referring to the heating oil allowance and the
safeguarding of loanees. In parallel, he sent a message to all
directions as per which he is determined to continue with the
governments reforms, adding that the government had been elected to
change thing and this is what it is doing.

Support of Low Brackets

Todays Cabinet meeting focused on the international monetary crisis and
the measures to be taken by the government in the immediate future.

The prime minister gave special emphasis to the international economic
crisis, requesting from the President of the Parliament to hold a
debate on the world monetary crisis and the governments policy.

However, he reiterated that the Greek economy holds up, stressing that
the Greek Banking system is safe and positive for the economy and
mainly for citizens and enterprises.

Furthermore, he stated that the global economic crisis demands
acceleration of the governments pace, alertness and calm, so that the
repercussions on the national economy are contained.

For that reason he called on his ministers to promote soon legislative
initiatives that would improve the citizens everyday life and solve
their problems. He also stressed that the government focuses its
interest in the creation of a stronger social protection index.

In parallel, he announced that bills for the protection and armouring
of loanees and for the Social Cohesion Fund would be tabled within the
next days, while the poor would receive the heating oil allowance.

Reactions

PASOK (Socialists) spokesman Giorgos Papakonstantinou described the
government and PMs announcements general, describing the course of the
Greek economy poor.

He did not rule out early elections after the the PMs talk today,
attributing the crisis, which Greeks are experiencing to the ND
economic policy and not to the international economic crisis.

KKE (Communist Party of Greece) announced that the Greek people should
not be concerned with the date of early elections but with the way they
will get rid off the governments anti-popular policy.

SYN (Coalition of the Left) President Alexis Tsipras stated that the
government is about to collapse, describing its policy busted.

Finance Minister, George Alogoskoufis submitted to the Parliament on
Thursday a new draft-bill for the protection of loanees. The new bill
increases amount of debt to 20.000 (from present 10.000) to allow the
only house of overdebtor to be put up for auction while start auction
price can not be under the propertys objective value regardless of the
property being within the city plan or not.

Also auctions will be exclusively carried out by courts in written and
sealed bids to safeguard impartiality of relevant procedures.

In response to rumours and uncertainty regarding developments in the
banking system, Mr. Alogoskoufis reassured that citizens savings
deposited in banks operating in Greece are fully guaranteed. The
Finance Minister repeated that the Greek bank system is safe and
trustworthy.

The Finance Minister underlined that the government adhering to its
commitment is forwarding any feasible measures to support citizens
particularly under the negative circumstances of the global financial
crisis of an unpredictable length and inflation flare up due to rises
in prices of fuel, food and raw material. He added that the specific
measures aim to protect loannes as rises in interest rates apparently
pass economic cost on borrowers.

The amendment on Olympic Airlines privatization is being debated today
amid controversy. The opposition is reacting strongly to the bill
describing its anti-constitutoional. In the morning, O.A employees
staged a protest rally before the Parliament, in reaction to the
governments plans to privatize the national air-carrier.The vote will
be followed by a legislative amendment on the employees future. Trade
Unions have decided to reject the Transport ministers invitation for
dialogue and instead hold rallies under GSEEs (Greek General
Confederation of Labour) cover. GSEE and public utilities employees
are also participating in todays rally. Furthermore, GSEE has announced
that it will stage a 24-hour strike in public utilities on 8 October in
reaction to the privatization of public enterprises and the sacking of
personnel without any compensation. On the contrary, pilots have
decided to meet with the Transport minister and then decide whether
they will participate in the dialogue over O.A.s privatization.
Meanwhile, the bidding tenders for prospect investors have been
published in three newspapers. The investors will have to declare their
interest by 31 October.

George Papandreou hailed PASOKs plan on the exodus from the crisis at
the partys headquarters on Wednesday. He meeting was attended by
several party cadres.

Mr Papandreou presented his proposals and criticized the government
over its economic policy. Specifically, he proposed a rise in salaries,
the boosting of the social state, development and a new relationship
between citizens and the state.

PASOKs first objective is to consolidate confidence and safety among
citizens and adopt measures for the protection of loanees. It also
proposed a solidarity allowance to the poor and a heating allowance to
low brackets. Farmers should have their VAT returned, while public
utility rates should drop and a more just taxation system should be
introduced.

PASOK also proposed the armouring of the Greek economy and the
protection of depositors, with the improvement of the monitoring
process of the monetary system.

In parallel, Mr Papandreou stated that he would take initiatives to
promote development and create more working positions, securing thus
social cohesion.

Moreover, he criticized the governments policy that undermines the
social state, annulling Greeces developmental prospects. He also
accused the government of using the international monetary crisis as an
excuse to overcome its problems.

Finally, he stressed that initiatives for the protection of the income
and the protection of loanees and depositors should be taken
immediately.

The meeting between Finance Minister, George Alogoskoufis and the
president of SYRIZA party Parliamentary group, Alekos Alavanos centered
on world financial crisis and its impact on Europe and Greece. Mr.
Alogoskoufis briefed Mr. Alavanos on the initiatives the government
intends to take for the shielding of the Greek economy and the support
of the low-income classes.

On his part, Mr. Alavanos stressed that it is mandatory to take
measures in an era when basic economic principals and views are
changing. In parallel, he called the government to guarantee the social
security funds reserves and replace structured bonds with state bonds
while he asked for a correction sum in salaries to support citizens to
deal with consequences of inflation flare up. Finally, he called on the
government to put a halt to privatizations, particularly in the
financial sector such as the PostBank, Attiki Bank and the National
Insurance Company.

In his speech at the ceremony of his declaration as honorary professor
at Thrace Democritios University in Komotini, President of the
Republic, Karolos Papoulias said: "In the era of globalization, there
is a need for redetermination of citizens and states terms for
participation in the world market. We should make a further step and
seek for mechanisms for redistribution of wealth at international level
not only to restrict consequences of unfavourable treatment some
peoples have suffered but also to strengthen world stability. In
parallel, in a friendship gesture to the neigbouring countries, Mr.
Papoulias called on the peoples to "overcome the past" as he
characteristically said.

"Global Cooperation Mandatory"

The President of the Republic placed special emphasis on the world
credit crisis, describing it as among the worst in world economic
history, which although started outside Europe in the US "as all credit
crisis do not limit in one state". "For this reason both its birth and
treatment concerns all of us". Mr. Papoulias also underlined that the
credit crisis emerged the big weakness of the world financial system
when dangers are underestimated and greediness prevails in the chase of
higher profits, when legislation allows dissociation of responsibility
from profits without terms and limits, when liquidity in world economy
is considered a shield for the protection from exaggerations."

Mr. Papoulias expressed conviction that the world credit crisis will
lead to formulation of a new generation of economic thought which will
impose rules of responsibility and transparency in the operation of the
financial system.

Prime Minister Kostas Karamanlis decided at the Cabinet meeting to
introduce a number of measures in support of citizens. The meeting
focused on the international monetary crisis and the armouring of the
economy, so that it is protected from the repercussions of the economic
crisis. The prime minister announced that setting up of government
committee on social policy with the participation of the Ministers of
Economy, Interior, Employment and Health, asking them to set a clear
timetable for the resolution of small and big problems citizens are
encountering. Furthermore, he reported that he will begin visiting
ministries to be briefed and promote objectives. He also called on his
ministers to continue tackling problems, adding that the doors of
ministries are open to all party MPs. He who will not cooperate will be
replaced. Referring to the coordination of competent ministries and
cooperation with MPs he said that personal strategies would not be
tolerated, adding that more work is demanded and no mistakes allowed.

A 49-year-old man from Thessaloniki has been arrested as he presented
himself as a Church representative selling property that allegedly
belongs to it. He argued that he had been selling at bargain prices.

His last victim was a civil engineer from Athens from whom he managed
to get 150,000.

The FYROM (Former Yugoslav Republic of Macedonia) Interior Ministry has
announced that the citizens of EU member-states and countries that had
signed the Schengen Treaty would not longer need their passports to
enter FYROM but only the identity card. The measure came into effect
Wednesday. In parallel, a change in legislation yesterday allows
foreigners of countries in the EU "white list" to travel to FYROM
without having their visa stamped. The Interior Ministry reported that
the measure aims at boosting economic cooperation with powerful foreign
countries and attracting foreign investors in the country. Moreover,
the above measures will help in boosting political dialogue between
FYROM and EU member-states.

Two suicide bomb attacks on Thursday killed 16 Shiite worshippers and
wounded 33 others outside two Shiite mosques in southeastern Baghdad,
an Interior Ministry source said. The first suicide attack occurred
when a suicide bomber wearing an explosive vest blew up himself outside
al-Rasoul Shiite mosque in Baghdads al-Jadida district, or New Baghdad,
killing 12 worshippers, and injuring 25 others. In a separate
incident, another suicide bomber rammed his explosive-laden car into a
crowd of Shiite worshippers while leaving another Shiite mosque in the
al-Zaafaraniyah neighborhood, leaving two of them as well as two Iraqi
soldiers killed and eight worshippers injured, the source said. Iraqi
security forces immediately cordoned off the two infested areas to
secure the scenes, while ambulances rushed to transport the victims to
nearby hospitals, he added. The attacks came as the Shiite worshippers
were marking the end of the Ramadan fasting. The number of victims
from violent acts in September has risen to 510.

The Cabinet is presently meeting under the prime ministers chairmanship
to discuss the international economic developments. After the
government committee meeting, Mr Karamanlis stressed hat the
government, in cooperation with the Bank of Greece guarantees and
safeguards the stability of the Greek Banking system and protects the
Greek citizens interests. He also reported that the government sees
with determination that the crisis in the global Banking system is
dealt with the least possible repercussions on the Greek economy.
Finally, he assured all that the Greek Banking system is healthy, safe
and resistant to vibrations. Todays meeting will also assess the
political situation after ND MP Stavros Dailakis had been written off
from the party and decide on the governments future moves. As per
information, the PM is expected to ask from the cabinet members to
continue materializing their work with cohesion and stop wasting their
time by discussing about a government reshuffle or elections.